The Biased Nature of the Corruption Perception Index

Abida Naurin
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Abida Naurin: Pakistan Institute of Development Economics, Islamabad

No 2023:41, PIDE Policy View Point from Pakistan Institute of Development Economics

Abstract: Corruption is a global issue that is present in numerous countries. Its broad meaning is the misuse of public power for personal gain, which leads to a less efficient allocation of resources than would be the case in an environment free of corruption. Corruption hinders social development, investment, and economic progress in several ways. The first effect of corruption is to decrease the effectiveness of government institutions and distort the distribution of resources. Additionally, it might cause capital flight and hinder international investment. Thirdly, corruption threatens the rule of law, which is necessary for economic growth.

Pages: 4 pages
Date: 2023
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